Contrarian signal on S&P

Broad-based bearish market sentiment is likely a contrarian signal and may mark a short-term bottom for the S&P 500, according to Horan Capital Advisors.

Horan Capital Advisors point out that the market has a history of making a bottom when the CBOE Equity Put/Call ratio is above 1.0 and the current reading of 0.92 is near that level. In fact, even though there was only a small decline in May of 0.37% , Horan Capital Advisors say that other market technicals are also indicating a short-term oversold market. As such, they think the current high level of market skepticism may mark a near-term market bottom.